PFRDA notifies amendments to National Pension System Trust and Pension Fund regulations

The Pension Fund Regulatory and Development Authority (PFRDA) has notified the amendments to the regulations governing the National Pension System Trust and the Pension Funds that aim to simplify provisions related to governance by enhancing disclosure and reducing compliance.

The National Pension System Trust (Second Amendment) Regulations 2023 made on 2 May 2024 and the Pension Fund (Amendment) Regulations 2023 of 2 September 2024 are in line with the amended Companies Act 2023.

The amendments related to the NPS Trust Regulations simplify the provisions governing the appointment of trustees, their terms and conditions, Board of Trustees meetings and the appointment of CEO of NPS Trust.

Amendments related to Pension Fund seek to simplify the provisions of pension fund administration and bring it on par with the Companies Act, 2013 as also to ensure enhanced disclosure by pension funds.

The amendments also seek to clarify roles of the sponsor and the pension fund as also compliance with ‘fit and proper person’ criteria.

Other regulations relate to the constitution of additional board committees such as Audit Committee and Nomination and Remuneration Committee.

Pension funds will have to ensure inclusion of the words ‘Pension Fund’ in name clause within a period of 12 months.

Further, the amendments make responsibility statements by directors of the pension fund in the annual report of schemes managed by the pension fund mandatory.

The amendments are detailed in PFRDA’s official website.